Charles Flanagan (Laois-Offaly, Fine Gael)
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My Department comprises two separate votes, Vote 28 Department of Foreign Affairs and Trade and Vote 27 International Co-operation. The total amount spent per annum in 2011, 2012, 2013 and to date in 2014 on staff subsistence payments and staff taxi payments is as per table.

Year	Subsistence	Taxi fares Reimbursed	Total
2011	754,865	151,755	906,620
2012	793,643	166,775	960,418
2013	829,662	182,027	1,011,689
(To 16 Dec)2014	726,494	161,189	887,683
TOTAL	3,104,664	661,746	3,766,410

Given the nature of my Department’s responsibilities, officers are obliged to undertake a significant amount of official travel. Travel and meetings often take place out of hours and away from the officer’s headquarters leading to subsistence and/or taxi requirements. The central aim of the Departmental travel policy is to minimise official travel costs and to achieve value for money for expenditure necessarily incurred, consistent with the effective discharge of official duties.

The Department complies with Department of Public Expenditure and Reform Circulars in relation to subsistence payments, including reimbursement of taxi costs. The Department is subject to audit by both the Office of the Comptroller and Auditor General and the Department’s Internal Audit function.

In September 2014 the Revenue Commissioners commenced an audit of my Department. Prior to this audit my Department reviewed findings of similar audits of other Government Departments previously undertaken by the Revenue Commissioners. On that basis my Department undertook a review of certain expenditure for the period to be audited. Based on this review my Department made a voluntary declaration to the Revenue Commissioners in relation to certain taxi costs where it was considered that there was an additional tax liability.

The Revenue audit covered the period 1 January 2012 to 31 July 2014. On the completion of the Revenue audit in November 2014 my Department made a payment of €33,570.12 in respect of taxes, interest and penalties.

This settlement comprises €22,340.97 in respect of under paid PAYE; €5,614.36 under paid Employer PRSI; €2,820.23 interest on late payment and €2,794.56 penalties. Because of the voluntary declaration the Revenue applied a penalty rate of 10%.

The settlement covers the following areas:

1. Taxis €26,660.90 - this relates to taxi journeys between officers’ home and headquarters. In accordance with Departmental policy officers who come in before 07:00 and leave after 21:00 may use a taxi. Under tax legislation travel between home and headquarters gives rise to a Benefit in Kind tax liability.

2. Interview Boards €2,679.65 - while the Department deducted withholding tax from payments to individual board members the Revenue have advised that these payments should be processed through payroll. This would result in the Department paying Employers PRSI.

3. Payments to two retired staff taken back to undertake project work €4,229.57 - while the Department deducted withholding tax from payments to these individuals the Revenue have advised that these payments should be processed through payroll. This would result in the Department paying Employers PRSI.

As a result of the Revenue Commissioners audit, my Department has introduced new procedures for processing payments to external members on interview boards and retired civil servants returning to work on contract; and to applying tax on official taxis costs taken by officers between headquarters and home in accordance with Revenue regulations.